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December 22. Russia reports that industrial output growth slowed to 0.6% annual growth in
October, then contracted by 8.7% annually in November, the worst monthly report since the
economic collapse which followed the ruble crisis of 1998. Critical to Russia’s economic
slowdown is the unwillingness of Russian banks, which are heavily exposed to foreign currency
denominated external debt, to lend.
December 21. Eurostat reports that Eurozone industrial orders fell 5.4% monthly in September
and 4.7% monthly and 15.1% annually in October.
December 21. Canada reports that its federal government and the province of Ontario will
contribute some C$4 billion (US$3.3 billion) to the short-term automotive rescue announced by
the U.S. administration. The United States will provide US$13.4 billion in emergency loans to
General Motors and Chrysler. General Motors is to receive C$3 billion of the Canadian funds,
while Chrysler is to receive C$1 billion. Ford declines injections. Limits on executive
compensation are a requirement for funds.
December 21. Zimbabwe reports its domestic debt level increased from Z$1 trillion on August 8
to Z$179.6 trillion (US$194 million at the current official inter-bank exchange rate) on September
8. This represents a monthly increase of 17,800%. Interest payments now account for roughly
90% of total debt.
December 19. President Bush announced an automotive rescue plan for General Motors Corp.
and Chrysler LLC that will make $13.4 billion in federal loans available almost immediately. The
money will come from the $700 billion fund set aside to rescue banks and investment firms in
October. The government attached several conditions to the three-year loans and set a deadline of
March 31 for the automakers to prove they can restructure enough to ensure their survival or
recall the loans. As part of the rescue, GM is required to reduce debt by two-thirds via debt-for-
equity swaps, pay half of the contributions to a retiree health care trust using stock, make union
workers’ wages competitive with foreign automakers and eliminate the union jobs bank, which
pays laid-off workers.
December 19. An international rescue package of 7.5 billion euro (US$10.6 billion) for Latvia
was announced. The IMF reports a 27-month stand by arrangement between Latvia and the IMF,

worth 1.7 billion euro (US$2.4 billion). The remainder of the rescue package includes 3.1 billion
euro from the European Union (EU), 1.8 billion euro from Nordic countries, 400 million euro
from the World Bank, 200 million euro from the Czech Republic, and 100 million euro each from
the European Bank of Reconstruction and Development, Estonia and Poland. Latvia nationalized
its second largest bank, Parex Bank. Latvia will implement measures to tighten fiscal policy and
stabilize its economy.
December 19. The Bank of Japan lowered the benchmark rate by 20 basis points to 0.3%. This
marks the second consecutive monthly cut.
December 18. Turkey reduces rates for the second consecutive month. The Central Bank of the
Republic of Turkey (CBRT) announced a 125-basis-point cut to their overnight borrowing rate
from 16.25% to 15.00%, and their overnight lending rate by 125 basis points, from 18.75% to
17.50%. Turkish interest rates are the highest in Europe, even after the rate cuts.
December 18. Mexican industrial output decreased an annual 2.7% in October, the sixth
consecutive monthly decline. More than 80% of Mexico’s exports go to the United States.
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December 18. Norwegian Central Bank cut its main policy interest rate by 175 basis points to
3.0%, the third decrease since October.
December 17. U.S. housing starts plummeted 18.9% in November, to a seasonally adjusted
annual rate of 625,000 units. This was a record monthly low.
December 16. The U.S. Federal Open Market Committee (FOMC) voted unanimously to lower
its target for the federal funds rate more than 75 basis points, to a range of 0.0% to 0.25%. Long
term bond yields dropped from 2.50% to 2.35%.
December 15. The Bank of Japan’s tankan survey of business confidence fell from minus 3 in
the third quarter to minus 24 points in the fourth quarter of the year. The 21 point contraction was
the steepest in the index since the oil shocks of the 1970s, and marked the lowest level in the
index since 2002.
December 12. Ecuador’s President Rafael Correa announced that Ecuador will stop honoring its
external debt; the country should expect lawsuits from bondholders in the short term. This is not

the same as declaring the entire Ecuadorean economy in default.
December 11. 27 European Union (EU) governments’ leaders approved a 200 billion euro
(US$269 billion) economic stimulus package. The cost is approximately 1.5% of the EU’s total
GDP. Member states will pay major shares; supranational EU institutions, such as the European
Investment Bank (EIB), will contribute the remaining 30 billion euro.
December 11. Taiwan’s central bank cut its leading discount rate by three quarters of a
percentage point to 2.0%, marking the biggest reduction since 1982. It was also the fifth rate cut
in two-and-a-half months.
December 11. The central Bank of Korea reduced the seven-day repurchase rate by one
percentage point to a record low of 3.00%. Interest rates have been reduced by 225 basis points in
two months, 100 basis points in October and 125 basis points in November.
December 5. November U.S. nonfarm employment loss of 533,000 jobs was the largest in 34
years, compared with the 602,000 decline in December 1974. The U.S. Bureau of Labor Statistics
also reported the unemployment rate rose from 6.5 to 6.7 percent. November’s drop in payroll
employment followed declines of 403,000 in September and 320,000 in October, as revised.
November 25. U.S. real GDP fell 0.5% in the third quarter of 2008. The announcement by the
U.S. Bureau of Economic Analysis also reported U.S. second quarter GDP increased 2.8%. BEA
attributed the third quarter decline to a contraction in consumer spending and deceleration in
exports.
November 24. The U.K. announced a fiscal stimulus package valued at £20 billion (US$30.2
billion) aimed at limiting the length and depth of the apparent U.K. recession. The package
included a temporary reduction of value-added tax from 17.5% to 15.0%.
November 24. The IMF Executive Board approved a 23-month Stand-By Arrangement for
Pakistan in the amount of $7.6 billion to support the country’s economic stabilization program.
November 24. The Central Bank of Iceland’s currency swap arrangement with Sweden,
Norway, and Denmark is extended through December 2009. On the same date, Standard & Poor’s
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Ratings Services, S&P, reduced its long-term Iceland sovereign credit rating from BBB to

BBB-, while maintaining its short-term Iceland sovereign currency rating at A-3.
November 24. The U.S. Treasury, Federal Reserve, and Federal Deposit Insurance Corp. said that
they will protect Citigroup against certain potential losses and invest an additional $20 billion
(on top of the previous $25 billion) in the company. The government is to receive $7 billion in
preferred shares in the company.
November 19. The IMF Executive Board agreed to a $2.1 billion loan for Iceland. Following the
decision of IMF’s Executive Board, Denmark, Finland, Norway, and Sweden agreed to provide
an additional $2.5 billion in loans to Iceland.
November 15. At a G-20 (including the G-8, 10 major emerging economies, Australia and the
European Union) summit in Washington, the G-20 leaders agreed to continue to take steps to
stabilize the global financial system and improve the international regulatory framework.
November 15. Japan announced that it would make $100 billion from its foreign exchange
reserves available to the IMF for loans to emerging market economies. This was in addition to $2
billion that Japan is to invest in the World Bank to help recapitalize banks in smaller, emerging
market economies. Also, the IMF and Pakistan agreed in principle on a $7.6 billion loan package
aimed at preventing the nation from defaulting on foreign debt and restoring investor confidence.
November 14. The President’s Working Group on Financial Markets (Treasury, Securities and
Exchange Commission, Federal Reserve, and the Commodity Futures Trading Commission)
announced a series of initiatives to strengthen oversight and the infrastructure of the over-the-
counter derivatives market. This included the development of credit default swap central
counterparties—clearinghouses between parties that own debt instruments and others willing to
insure against defaults.
November 13. The African Development bank conference on the financial crisis ended with a
pessimistic outlook for Sub-Saharan Africa, due to declines in foreign capital, export markets
and commodity-based exports.
November 13. Eurostat declared that Eurozone GDP declined by 0.2% in the third quarter of
2008, as well as the second quarter. Since recession is defined as two successive quarters of
contracting GDP, this means that the Eurozone is technically in recession.
November 12. United States Treasury Secretary Paulson announced a change in priorities for
the US$700 billion Troubled Asset Relief Program (TARP) approved by Congress in early

October. The first priority remains to provide direct equity infusions to the financial sector.
Roughly US$250 billion has been allocated to this sector. This scope was broadened to include
non-banks, particularly insurance companies such as AIG, which provide insurance for credit
defaults. Paulson noted that TARP would be used to purchase bank stock, not toxic assets.
Paulson’s new plan also would provide support for the asset-backed commercial paper market,
particularly securitized auto loans, credit card debt, and student loans. Between August and
November 2007 asset-backed commercial paper outstanding contracted by nearly US$400 billion.
Paulson rejected suggestions that TARP funds be made available to the U.S. auto industry.
November 12. The Central Bank of Russia raised key interest rates by 1%. Swiss Economics
Minister announced the Swiss government would inject 341 million Swiss Francs/US$286.6
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million for economic stimulus. The State Bank of Pakistan raised interest rates by 2%, to reduce
inflation. It also injected 320 billion rupees/US$4 billion into the Pakistan banking system.
November 11. IMF deferred their decision to approve US$2.1 billion loan for Iceland. This
was the third time the IMF board scheduled then failed to discuss the Iceland proposal. The
tentative Iceland package required Iceland to implement economic stabilization. That economic
stabilization was the required trigger for implementation of EU loans to Iceland from Norway,
Poland and Sweden. Iceland is reportedly involved in disputes over deposit guarantees with
British and Dutch depositors in Icelandic banks.
November 10. The United States government announced further aid to American International
Group, AIG. AIG’s September $85 billion loan was reduced to $60 billion; the government
bought $40 billion of preferred AIG shares, and $52.5 billion of AIG mortgage securities. The
U.S. support of AIG increased from September’s $85 billion to $150 billion.
November 9. G-20 meeting of finance ministers and central bank governors in Sao Paulo, Brazil,
concluded with a communiqué calling for increased role of emerging economies in reform of
Bretton Woods financial institutions, including the World Bank and the International Monetary
Fund.
November 9. China announced a 4 trillion Yuan/U.S. $587 billion domestic stimulus package.

primarily aimed at infrastructure, housing, agriculture, health care, and social welfare spending.
This program represents 16% of China’s 2007 GDP, and roughly equals total Chinese central and
local government outlays in 2006.
November 8. Latvian government took over Parex Bank, the second-largest bank in Latvia.
November 7. Iceland’s President Grimsson reportedly offered the use of the former U.S. Air
Force base at Keflavik to Russia. The United States departed Keflavik in 2006.
November 7. United States October employment report revealed a decline of 240,000 jobs in
October, and September job losses revised from 159,000 to 284,000. The U.S. unemployment rate
rose from 6.1% to 6.5%, a 14-year high.
November 7. Moody’s sovereign rating for Hungary is reduced from A2 to A3. Despite IMF
assistance, financial instability may require “severe macroeconomic and financial adjustment.”
Moody’s reduced its ratings of Latvia from A3 to A2, before the Latvian statistical office
announced Latvian GDP fell at a 4.2% annual rate in the third quarter of 2008. Moody’s also
announced an outlook reduction for Estonia and Lithuania.
November 6. IMF approved SDR 10.5 billion/U.S. $15.7 billion Stand-By Arrangement for
Hungary. U.S. $6.3 billion is to be immediately available.
November 6. International Monetary Fund announced its updated World Economic Outlook.
Main findings include that “global activity is slowing quickly”, and “prospects for global growth
have deteriorated over the past month.” The IMF now projects global GDP growth for 2009 at
2.2% , 3/4 of a percentage point lower than projections announced in October, 2008. It projects
U.S. GDP growth at 1.4% in 2008 and -0.7% in 2009.
November 6. The European Central Bank
, ECB, reduced its key interest rate from 3.75% to
3.25%. In two months the ECB has reduced this rate from 4.25% to 3.25%. The Danish Central
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Bank lowered its key lending rate from 5.5% to 5%. The Czech National Bank reduced its
interest rate from 3.5% to 2.75%. In South Korea, the Bank of Korea reduced its key interest rate
from 4.25% to 4%. During October the Bank of Korea reduced its rate from 5.25% to 4.25%.

November 4. United States Institute of Supply Management’s manufacturing index fell 4.6
points in October to 38.9, after previously falling in September. The export orders component of
the manufacturing index fell 11 points in October to 41, following a drop of 5 points in
September. 41 is the lowest level in this export index in 20 years. Exports have been the
strongest sector in U.S. manufacturing during the past year.
November 4. Australia. Reserve Bank of Australia lowered its overnight cash rate by 75 basis
points to 5.25%, the lowest Australian rate since March 2005.
November 4. Indian Prime Minister Manmohan Singh established a Cabinet-level committee to
evaluate the effect of the financial crisis on India’s economy and industries. This follows the
November 2 Indian and Pakistani Central banks’ actions to boost liquidity. India cut its short-
term lending rate by 50 basis points to 7.5% and reduced its cash reserve ratio by 100 basis points
to 5.5%.
November 4. Chilean President Michelle Bachelet announced a U.S. $1.15 billion stimulus
package to boost the housing market and channel credit into small and medium businesses.
November 3. IMF announced agreement with Kyrgyzstan on arrangement under the Exogenous
Shocks Facility to provide at least U.S. $60 million. The agreement requires the approval of the
IMF Executive Board to become final.
November 3. Russian Prime Minister Vladimir Putin reported measures to support the real
economy. The measures will include temporary preferences for domestic producers for state
procurement contracts, subsidizing interest rates for loans intended to modernize production; and
tariff protection for a number of industries such as automobiles and agriculture. The new policy
aims to support exporters.
October 31. Three of the six Gulf Cooperation Council, GCC, countries, Bahrain, Kuwait and
Saudi Arabian central banks reduced interest rates to follow the actions of the U.S. Federal
Reserve and other central banks.
October 31. Kazakhstan government will make capital injections into its top four banks,
Halyk Bank, Kazkommertsbank, Alliance Bank and BTA Bank.
October 31. The U.S. Commerce Department reported that consumer spending fell 0.3% in
September after remaining flat in the previous month. On a year-to-year basis, spending was
down 0.4%, the first such drop since the recession of 1991. Consumer spending has not grown

since June.
October 30. The U.S. Bureau of Economic Analysis reported that U.S. real gross domestic
product decreased 0.3 per cent in the third quarter of 2008 after increasing 2.8 per cent in the
second quarter of 2008.
October 29. The U.S. Federal Reserve lowered its target for the federal funds rate 50 basis
points to 1 per cent. It also approved a 50 basis point decrease in the discount rate to 1.25 per
cent. The Federal Reserve also announced establishment of temporary reciprocal currency
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arrangements, or swap lines, with the Banco Central do Brasil, the Banco de Mexico, the Bank of
Korea, the Monetary Authority of Singapore, and the Reserve Bank of New Zealand. Swap lines
are designed to help improve liquidity conditions in global financial markets.
October 29. IMF approved the creation of a Short-Term Liquidity Facility, established to
support countries with strong policies which face temporary liquidity problems.
October 28. The IMF, the European Union, and the World Bank announced a joint financing
package for Hungary totaling $25.1 billion to bolster its economy. The IMF is to lend Hungary
$15.7 billion, the EU $8.1 billion, and the World Bank $1.3 billion.
October 28. The U.S. Conference Board said that its consumer confidence index has dropped to
an all-time low, from 61.4 in September to 38 in October.
October 27. Iceland’s Kaupthing Bank became the first European borrower to default on yen-
denominated bonds issued in Japan (samurai bonds).
October 26. The IMF announced it is set to lend Ukraine $16.5 Billion.
October 24. IMF announced an outline agreement with Iceland to lend the country $2.1 billion
to support an economic recovery program to help it restore confidence in its banking system and
stabilize its currency.
October 23. President Bush called for the G-20 leaders to meet on November 15 in Washington,
DC to deal with the global financial crisis.
October 22. Pakistan sought help from the IMF to meet balance of payments difficulties and to
avoid a possible economic meltdown amid high fuel prices, dwindling foreign investment and

soaring militant violence.
G-20. The Group of 20 Finance Ministers and Central Bank Governors from industrial and
emerging-market countries is to meet in Sao Paulo, Brazil on November 8-9, 2008, to discuss key
issues related to global economic stability.
October 20. The Netherlands agreed to inject
€
10 billion ($13.4 billion) into ING Groep NV, a
global banking and insurance company. The investment is to take the form of nonvoting preferred
shares with no maturity date (ING can repay the money on its own schedule and will have the
right to buy the shares back at 150% of the issue price or convert them into ordinary shares in
three years). The government is to take two seats on ING’s supervisory board; ING’s executive-
board members are to forgo 2008 bonuses; and ING said it would not pay a dividend for the rest
of 2008.
October 20. Sweden proposed a financial stability plan, which includes a 1.5 trillion Swedish
kronor ($206 billion) bank guarantee, to combat the impact of the economic crisis.
October 20. The U.N.’s International Labor Organization projects that the global financial
crisis could add at least 20 million people to the world’s unemployed, bringing the total to 210
million by the end of 2009.
October 19. South Korea announced that it would guarantee up to $100 billion in foreign debt
held by its banks and would pump $30 billion more into its banking sector.
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October 18. President Bush, President Nicolas Sarkozy of France, and the president of the
European Commission issued a joint statement saying they agreed to “reach out to other world
leaders” to propose an international summit meeting to be held soon after the U.S. presidential
election, with the possibility of more gatherings after that. The Europeans had been pressing for a
meeting of the Group of 8 industrialized nations, but President Bush went one step further, calling
for a broader global conference that would include “developed and developing nations”—among
them China and India.

October 17. The Swiss government said it would take a 9% stake ($5.36 billion) in UBS, one of
the country’s leading banks, and set up a $60 billion fund to absorb the bank’s troubled assets.
UBS had already written off $40 billion of its $80 billion in “toxic American securities.” The
Swiss central bank was to take over $31 billion of the bank’s American assets (much of it in the
form of debt linked to subprime and Alt-A mortgages, and securities linked to commercial real
estate and student loans).
October 15. The G8 leaders (Canada, France, Germany, Italy, Japan, Russia, the United Kingdom
and the United States, and the European Commission) stated that they were united in their
commitment to resolve the current crisis, strengthen financial institutions, restore confidence in
the financial system, and provide a sound economic footing for citizens and businesses. They
stated that changes to the regulatory and institutional regimes for the world’s financial sectors are
needed and that they look forward to a leaders’ meeting with key countries at an appropriate time
in the near future to adopt an agenda for reforms to meet the challenges of the 21
st
century.
October 14. In coordination with European monetary authorities, the U.S. Treasury, Federal
Reserve, and Federal Deposit Insurance Corporation announced a plan to invest up to $250
billion in preferred securities of nine major U.S. banks (including Citigroup, Bank of America,
Wells Fargo, Goldman Sachs and JPMorgan Chase). The FDIC also became able to
temporarily guarantee the senior debt and deposits in non-interest bearing deposit transaction
accounts (used mainly by businesses for daily operations).
261

October 13. U.K. Government provided $60 billion and took a 60% stake in Royal Bank of
Scotland and 40% in Lloyds TSB and HBOS.
October 12-13. Several European countries (Germany, France, Italy, Austria, Netherlands,
Portugal, Spain, and Norway) announced rescue plans for their countries worth as much as
$2.7 trillion. The plans were largely consistent with a U.K. model that includes concerted action,
recapitalization, state ownership, government debt guarantees (the largest component of the
plans), and improved regulations.

October 8. In a coordinated effort, the U.S. Federal Reserve, the European Central Bank, the
Bank of England and the central banks of Canada and Sweden all reduced primary lending
rates by a half percentage point. Switzerland also cut its benchmark rate, while the Bank of
Japan endorsed the moves without changing its rates. The Chinese central bank also reduced its
key interest rate and lowered bank reserve requirements. The Federal Reserve’s benchmark short-
term rate stood at 1.5% and the European Central Bank’s at 3.75%.

261
U.S. Treasury. “Joint Statement by Treasury, Federal Reserve and FDIC.” Press Release HP-1206, October 14,
2008.
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October 5. The German government moved to guarantee all private savings accounts and
arranged a bailout for Hypo Real Estate, a German lender. A week earlier, Fortis, a large
banking and insurance company based in Belgium but active across much of Europe, had
received
€
11.2 billion ($8.2 billion) from the governments of the Netherlands, Belgium and
Luxembourg. On October 3, the Dutch government seized its Dutch operations and on October 5,
the Belgian government helped to arrange for BNP-Paribas, the French bank, to take over what
was left of the company.
October 3. U.S. House of Representatives passes 110
th
Congress bill H.R. 1424, Financial
Institutions Rescue bill, clearing it for Presidential signing or veto. President signs bill into law,
P.L. 110-343, the Emergency Economic Stabilization Act of 2008, sometimes referred to as the
Troubled Assets Relief Program, TARP. The new bill’s title includes its purpose:
“A bill to provide authority for the Federal Government to purchase and insure certain types of
troubled assets for the purposes of providing stability to and preventing disruption in the economy

and financial system and protecting taxpayers ”
October 3. Britain’s Financial Services Authority said it had raised the amount guaranteed in
savings accounts to £50,000 ($88,390) from £35,000. Greece also stated that it would guarantee
savings accounts regardless of the amount.
October 3. Wells Fargo Bank announced a takeover of Wachovia Corp, the fourth-largest U.S.
bank. (Previously, Citibank had agreed to take over Wachovia.)
October 1. U.S. Senate passed H.R. 1424, amended, Financial Institutions Rescue bill.
September/October. On September 30, Iceland’s government took a 75% share of Glitnir,
Iceland’s third-largest bank, by injecting
€
600 million ($850 million) into the bank. The following
week, it took control of Landsbanki and soon after placed Iceland’s largest bank, Kaupthing,
into receivership as well.
September 26. Washington Mutual became the largest thrift failure with $307 billion in assets.
JPMorgan Chase agreed to pay $1.9 billion for the banking operations but did not take
ownership of the holding company.
September 22. Ireland increased the statutory limit for the deposit guarantee scheme for banks
and building societies from
€
20,000 ($26,000) to
€
100,000 ($130,000) per depositor per
institution.
September 21. The Federal Reserve approved the transformation of Goldman Sachs and
Morgan Stanley into bank holding companies from investment banks in order to increase
oversight and allow them to access the Federal Reserve’s discount (loan) window.
September 18. Treasury Secretary Paulson announced a $700 billion economic stabilization
proposal that would allow the government to buy toxic assets from the nation’s biggest banks, a
move aimed at shoring up balance sheets and restoring confidence within the financial system. An
amended bill to accomplish this was passed by Congress on October 3.

September 16. The Federal Reserve came to the assistance of American International Group,
AIG, an insurance giant on the verge of failure because of its exposure to exotic securities known
as credit default swaps, in an $85 billion deal (later increased to $123 billion).
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September 15. Lehman Brothers bankruptcy at $639 billion is the largest in the history of the
United States.
September 14. Bank of America said it will buy Merrill Lynch for $50 billion.
September 7. U.S. Treasury announced that it was taking over Fannie Mae and Freddie Mac,
two government-sponsored enterprises that bought securitized mortgage debt.
August 12. According to Bloomberg, losses at the top 100 banks in the world from the U.S.
subprime crisis and the ensuing credit crunch exceeded $500 billion as write downs spread to
more asset types.
May 4. Finance ministers of 13 Asian nations agreed to set up a foreign exchange pool of at least
$80 billion to be used in the event of another regional financial crisis. China, Japan and South
Korea are to provide 80% of the funds with the rest coming from the 10 members of ASEAN.
March. The Federal Reserve staved off a Bear Stearns bankruptcy by assuming $30 billion in
liabilities and engineering a sale of Bear Sterns to JPMorgan Chase for a price that was less than
the worth of Bear’s Manhattan office building.
February 17. The British government decided to “temporarily” nationalize the struggling
housing lender, Northern Rock. A previous government loan of $47 billion had proven
ineffective in helping the company to recover.
January. Swiss banking giant UBS reported more than $18 billion in writedowns due to
exposure to U.S. real estate market. Bank of America acquired Countrywide Financial, the
largest mortgage lender in the United States.
2007
July/August. German banks with bad investments in U.S. real estate are caught up in the
evolving crisis, These include IKB Deutsche Industriebank, Sachsen LB (Saxony State Bank)
and BayernLB (Bavaria State Bank).

July 18. Two battered hedge funds worth an estimated $1.5 billion at the end of 2006 were
almost entirely worthless. They had been managed by Bear Stearns and were invested heavily in
subprime mortgages.
July 12. The Federal Deposit Insurance Corp. took control of the $32 billion IndyMac Bank
(Pasadena, CA) in what regulators called the second-largest bank failure in U.S. history.
March/April. New Century Financial corporation stopped making new loans as the practice of
giving high risk mortgage loans to people with bad credit histories becomes a problem. The
International Monetary Fund warned of risks to global financial markets from weakened US
home mortgage market.
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Appendix B. Stimulus Packages Announced by
Governments
Date
Announced
Country $Billion Status, Package Contents
17-Feb-09 United
States
787.00 Infrastructure technology, tax cuts, education, transfers to states, energy,
nutrition, health, unemployment benefits. Budget in deficit.
4-Feb-09 Canada 32.00 Two-year program. Infrastructure, tax relief, aid for sectors in peril.
Government to run an estimated $1.1 billion budget deficit in 2008 and $52
billion deficit in 2009.
7-Jan-09 Mexico 54.00 Infrastructure, a freeze on gasoline prices, reducing electricity rates, help
for poor families to replace old appliances, construction of low-income
housing and an oil refinery, rural development, increase government
purchases from small- and medium-sized companies. Paid for by taxes, oil
revenues, and borrowing.
12-Dec-08 European

Union
39.00 Total package of $256 billion called for states to increase budgets by $217
billion and for the EU to provide $39 billion to fund cross-border projects
including clean energy and upgraded telecommunications architecture.
13-Jan-09 Germany 65.00 Infrastructure, tax cuts, child bonus, increase in some social benefits,
$3,250 incentive for trading in cars more than nine years old for a new or
slightly used car.
24-Nov-08 United
Kingdom
29.60 Proposed plan includes a 2.5% cut in the value added tax for 13 months, a
postponement of corporate tax increases, government guarantees for loans
to small and midsize businesses, spending on public works, including public
housing and energy efficiency. Plan includes an increase in income taxes on
those making more than $225,000 and increase National Insurance
contribution for all but the lowest income workers.
5-Nov-08 France 33.00 Public sector investments (road and rail construction, refurbishment and
improving ports and river infrastructure, building and renovating
universities, research centers, prisons, courts, and monuments) and loans
for carmakers. Does not include the previously planned $15 billion in
credits and tax breaks on investments by companies in 2009.
16-Nov-08 Italy 52.00 Awaiting final parliamentary approval. Three year program. Measures to
spur consumer credit, provide loans to companies, and rebuild
infrastructure. February 6, announced a $2.56 billion stimulus package that
was part of the three-year program that includes payments of up to $1,950
for trading in an old car for a new, less polluting one and 20% tax
deductions for purchases of appliances and furniture.
22-Nov-08 Netherlands 7.50 Tax deduction to companies that make large investments, funds to
companies that hire temporary workers, and creation of a program to find
jobs for the unemployed.
11-Dec-08 Belgium 2.60 Increase in unemployment benefits, lowering of the value added tax on

construction, abolishing taxes on energy, energy checks for families, faster
payments of invoices by the government, faster government investment in
railroads and buildings, and lowering of employer’s fiscal contributions.
27-Nov-08 Spain 14.30 Public works, help for automobile industry, environmental projects,
research and development, restoring residential and military housing, and
funds to support the sick.
14-Jan-09 Portugal 2.89 Funds to be provided to medium and small-sized businesses, money for
infrastructure, particularly schools, and investment in technological
improvement.
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Date
Announced
Country $Billion Status, Package Contents
20-Nov-08 Israel 5.40 Public works to include desalination plants, doubling railway routes, adding
R&D funding, increasing export credits, cutting assorted taxes, and aid
packages for employers to hire new workers.
21-Dec-08 Switzerland 0.59 Public works spending on flood defense, natural disaster and energy-
efficiency projects.
5-Dec-08 Sweden 2.70 Public infrastructure and investment in human capital, including job training,
vocational workshops, and workplace restructuring.; extension of social
benefits to part-time workers.
26-Jan-09 Norway 2.88 Investment in construction, infrastructure, and renovation of state-owned
buildings, tax breaks for companies.
20-Nov-08 Russia 20.00 Cut in the corporate profit tax rate, a new depreciation mechanism for
businesses, to be funded by Russia’s foreign exchange reserves and rainy
day fund.
3-Dec-08 Egypt 8.51 Infrastructure, Industrial Development Authority, Export Development
Fund, investment funds for small- and medium-sized enterprises, funds for

industrial modernization, training, technology transfer centers, export
promotion, land development
10-Nov-08 China 586.00 Low-income housing, electricity, water, rural infrastructure, projects aimed
at environmental protection and technological innovation, tax deduction
for capital spending by companies, and spending for health care and social
welfare.
13-Dec-08


6-Apr-09
Japan


Japan
250.00


146.00
Increase in government spending, funds to stabilize the financial system
(prop up troubled banks and ease a credit crunch by purchasing
commercial paper), tax cuts for homeowners and companies that build or
purchase new factories and equipment, and grants to local government.
Increasing safety net for non-regular workers, support for small businesses,
revitalizing regional economies, promoting green car purchases, promoting
solar power and nursing and medical services.
3-Nov-08


9-Feb-09
South

Korea

South
Korea
14.64


37.87
$11 billion for infrastructure (including roads, universities, schools, and
hospitals; funds for small- and medium-business, fishermen, and families
with low income) and tax cuts. Includes an October 2008 stimulus package
of $3.64 billion to provide support for the construction industry.
The government announced its intention to invest $37.87 billion over the
next four years in eco-friendly projects including the construction of dams;
“green” transportation networks such as low-carbon emitting railways,
bicycle roads, and other public transportation systems; and expand existing
forest areas.
16-Dec-08 Vietnam 6.00 Tax cuts, spending on infrastructure, housing, schools, and hospitals.
28-Jan-09 Indonesia 6.32 (Proposed) Tax incentives for companies and individuals, cuts in fuel and
electricity prices, spending on infrastructure.
21-Jan-09 Philippines 7.01 Stimulus package wrapped into the current budget. More spending on
infrastructure, agriculture, education, and health, cash for poor households,
and tax cuts. Partial funding by borrowing from government corporations
and from the nation’s social security system.
29-Jan-09 Thailand 3.35 Cash for low earners, tax cuts, expanded free education, subsidies for
transport and utilities.
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Congressional Research Service 144
Date

Announced
Country $Billion Status, Package Contents
22-Jan-09 Singapore 13.70 Personal income tax rebate; cut in maximum corporate tax rate; subsidies
for employee wages; training; cash handouts to low-income workers;
increase in public sector hiring; assuming 80% of the risk on private bank
loans; boosting aid to welfare recipients, government pensioners, and
students; invest in infrastructure.
30-Nov-08 Malaysia 1.93 High impact infrastructure projects including roads, schools, and housing.
Government budget in deficit. Expect a second, larger stimulus package in
February or March 2009.
8-Dec-08 India 4.00 Stimulus package includes $70 million to finance exports of textiles and
handicrafts; value added tax rate cut at different levels and across products.
Public works spending includes funding for various sectors, including:
housing, automobile, infrastructure, power, and medium and small
industries. In addition, import duties on naptha was revoked, export duty
on iron ore was removed, levy on exports of iron were reduced.
28-Nov-08 Taiwan 15.60 Shopping vouchers of $108 each for all citizens, construction projects to be
carried out over four years include expanding metro systems, rebuilding
bridges and classrooms, improving, railway and sewage systems, and renew
urban areas.
31-Dec-08 Sri Lanka 0.14 Cuts in prices for diesel, kerosene, and furnace oil; lifting of surcharge on
electricity, incentive for exporters not to retrench workers, lifting of tax
on rubber exports, and subsidies for tea farmers.
26-Jan-09 Australia 35.2 $7 billion stimulus package in October 2008 was cash handouts to low
income earners and pensioners. January’s $28.2 billion package includes
infrastructure, schools and housing, and cash payments to low- and middle-
income earners. Budget is in deficit.
7-Jan-09 Mexico 54.00 Infrastructure, a freeze on gasoline prices, reducing electricity rates, help
for poor families to replace old appliances, construction of low-income
housing and an oil refinery, rural development, increase government

purchases from small- and medium-sized companies. Paid for by taxes, oil
revenues, and borrowing.
23-Dec-08 Brazil 5.00 Program established in 2007 to continue to 2010. Tax cuts (exempt capital
goods producers from the industrial and welfare taxes, increase the value
of personal computers exempted from taxes) and rebates. Funded by
reducing the government’s budget surplus.
5-Dec-08 Argentina 3.80 Low-cost loans to farmers, automakers, or other exporters.
6-Jan-09 Chile 4.00 Infrastructure, subsidies for copper producer, lower employer
contributions for small- and medium-sized companies, and income tax
rebates. Funded from copper windfall earnings saved in sovereign wealth
funds and by issuing bonds.
Source: Congressional Research from various news articles and government press releases.
Notes: Currency conversions to U.S. dollars were either already done in the news articles or by CRS using
current exchange rates.
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Congressional Research Service 145
Appendix C. Comparison of Selected Financial
Regulatory Reform Proposals
262

This appendix provides a comparison, in graphic form, of selected proposals for regulatory
reform that have been put forward in the wake of the global financial crisis. Seven such proposals
are covered in the table below. They are, in chronological order:
U.S. Department of the Treasury, Blueprint for a Modernized Financial Regulatory Structure,
March 2008. (This study was completed under Secretary Henry Paulson, during the Bush
Administration.)
Counterparty Risk Management Policy Group (CRMPG), Containing Systemic Risk: The
Road to Reform, Aug. 6, 2008. (The CRMPG, a group of commercial and investment bankers,
began this study at the suggestion of the President’s Working Group on Financial Markets. Its

focus is on market participants, rather than regulators.)
Congressional Oversight Panel (COP), Special Report on Regulatory Reform: Modernizing the
American Financial Regulatory System: Recommendations for Improving Oversight, Protecting
Consumers, and Ensuring Stability, January 2009. (The COP was created by the Emergency
Economic Stabilization Act of 2008 (P.L. 110-343) to oversee the Troubled Asset Relief
Program.)
Group of Thirty, Financial Reform: A Framework for Financial Stability, January 15, 2009.
(The Group of Thirty is a private, nonprofit body composed of senior representatives of the
private and public sectors and academia, which aims to deepen understanding of international
economic and financial issues.)
Group of 20 (G-20), G-20 Working Group on Enhancing Sound Regulation and Strengthening
Transparency: Final Report (Draft), February 2009. (The G-20 is made up of the finance
ministers and central bank governors of 19 countries: Argentina, Australia, Brazil, Canada, China,
France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa,
South Korea, Turkey, the U.K., and the United States, and also the European Union.)
Financial Services Authority (FSA), The Turner Review: A Regulatory Response to the Global
Banking Crisis, March 2009. (The FSA is the UK regulatory agency with jurisdiction over
banking, securities, insurance, and derivatives. Adair Turner has been FSA chairman since
September 2008.)
U.S. Department of the Treasury, Financial Regulatory Reform: A New Foundation, June 2009.
(Treasury has released draft legislative language containing many of these recommendations.)
The table below lists a number of specific recommendations contained in the above reports and
studies, and indicates by an “X” which ones contain each recommendation. The absence of an
“X” does not necessarily mean that the authors of the report oppose the recommendation—each
study has its own scope and focus. In some cases, studies identify issues as needing further study;

262
Prepared by Mark Jickling, Specialist in Financial Economics.
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Congressional Research Service 146
in others, an issue may be identified as a problem contributing to the financial crisis without a
specific recommendation for reform being made. (In neither of these cases would an “X” appear
in the table.)

(An “X” indicates that a report includes the recommendation at the left)
Recommendation
Treasury
(2009)
FSA
G-
20
Group
of 30
COP CRMPG
Treasury
(2008)
Systemic Risk
Create (or designate) a single regulator with
responsibility over all systemically-important
financial institutions, regardless of their legal
form.
X X X
All systemically-important financial
institutions should be subject to an
appropriate degree of regulation.
X X X X X X
The systemic risk regulator should have
prompt corrective action powers with
regard to failing systemically-important firms.

X X X
Firms’ internal risk controls should be made
more robust and should take systemic risk
into account. Corporate boards should
assume more responsibility for their firms’
risk management practices.
X X X
Systemically-important banks should be
restricted in certain risky activities, such as
affiliation with non-financial firms,
proprietary trading, etc.
X X X
Financial institutions’ use of stress testing
should be more rigorous.
X X X X
Regulation of critical payment systems
should be strengthened.
X X
International monitoring for systemic risk
should be enhanced, and a more formal
mechanism should be created.
X X X X X
Capital Standards
Large complex systemically-important
financial institutions should be subject to
more stringent capital regulation than other
firms.
X X X X
Minimum capital standards should be raised
throughout the banking system, or for all

financial institutions.
X X X X X
Capital standards should be adjusted to
avoid procyclicality, that is, firms should be
required to build up capital during good
times, and be allowed to hold less capital
during cyclical contractions.
X X X X X
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Congressional Research Service 147
Recommendation
Treasury
(2009)
FSA
G-
20
Group
of 30
COP CRMPG
Treasury
(2008)
Regulators’ and firms’ capital decisions
should make greater provision against
liquidity risk.
X X X X X X
Hedge Funds and Other Private Pools of Capital
Hedge funds should be required to register
with the Securities and Exchange
Commission (SEC) or other national

securities regulator.
X X X X X
Systemically-important hedge funds should
be subject to prudential regulation.
X X X X X
Hedge funds should provide information on
a confidential basis to regulators about their
strategies and positions.
X X X X X
Over-the-Counter (OTC) Derivatives
Credit default swaps should be processed
through a regulated centralized counterparty
(CCP) or clearing house.
X X X X X X
All standardized OTC derivatives should be
processed through a regulated CCP or
clearing house.
X X
OTC derivatives dealers should be subject
to a strong regulatory regime.
X
Non-standard (or customized) OTC
derivatives should be reported to a central
trade repository or to a regulator.
X X
Resolution Authority for Non-Bank Financial Institutions
To avoid disorderly liquidations, a
government agency should have authority to
take over a failing, systemically-important
non-bank institution, and place it in

conservatorship or receivership, outside the
bankruptcy system.
X X
Money Market Funds
SEC (or other national regulator) should
impose limits on risk-taking to make money
market funds less vulnerable to runs.
X X
Funds that offer bank-like services should be
chartered as special purpose banks, insured,
and regulated.
X
Compensation Structures in Financial Firms
Pay practices should discourage excessive
risk-taking, via incentives for fostering long-
term stability rather than maximizing annual
performance bonuses.
X X X X